NPR's financial correspondent Adam Davidson still hasn’t caught on to the fact that the problem in the U.S. housing market is not limited to the subprime segment. With house prices falling in many cities at this point, defaults are rising rapidly across the board. The unprecedented glut of unsold and vacant homes virtually guarantees that house prices will continue to fall and probably at an accelerated pace. The financial markets seem to be catching on these facts, even if NPR’s correspondent is still a bit lost. Btw, Mr. Davidson also gave the hold tight advice to investors.
--Dean Baker
